Déjà Vu: It’s Expiration Week

NicoleWachs posted on 02/20/09 at 09:59 AM


Nicole Wachs reminds you to be extra vigilant in monitoring your positions. 
 


I’m sure you know the drill by now, but if this is your first time reading my monthly expiration blog, here it is in a nutshell: please, please, please check your holdings for positions expiring this month. Determine which positions you need to address right away and take appropriate action. Refer to your trading plan to help you make decisions.

No time is the right time to ignore your brokerage account, but this is especially true for Options Expiration Week. If you do, you risk incurring substantial losses. Please peruse the blogs and webinars below to get a better understanding of things that can happen during this volatile time. Feel free to speak to one of our brokers by phone, chat or email, or post a question below.

And one more thing – I would love for you to join me on Thursday, February 26 at 8pm for my monthly webinar: Rookies Corner. Each month I cover various beginner trading topics. This month I will be covering Options Vocabulary. See you then!

Regards,
--Nicole Wachs
Director of Education
 
Nicole’s previous blog posts: Uracowman eyes the “shorting opportunity of the decade” and Leveraged ETFs: Not as Simple as You Thought

Click here for a list of previous TradeKing All-Star blogs.


Expiration Documents
Download the 2009 expiration calendar.
Download the 2010 expiration calendar.


Blog posts
Near Worthless Options Can Inflict Much Pain by Nicole Wachs
This post explains that an option which has lost a lot of value can still be in the money and therefore be automatically exercised. It stresses not to “walk away” from your account when you have open positions.

Dirty Calls during Expiration Week by Nicole Wachs
This post explains the risks of holding long calls through expiration.

Call Spreads Can be Messy at Expiration by Nicole Wachs
This post explains the risks of holding a short call (credit) spread through expiration.

How to Analyze Non-Standard Options by Nicole Wachs
This post explains how to evaluate Non-Standard options and how to figure out if they are in- or out-of-the-money.

Pin the Tail on the Strike by Nicole Wachs
This post explains why pinning happens at expiration.


Brian Overby’s Five Part blog post series on Early Exercise
Part 1 Definition of early exercise

Part 2 Contributing factors of early exercise

Part 3 The math used to determine whether someone may want to exercise early

Part 4 Calls and puts – the risk of early exercise for each is not the same.
Assignment risk with spreads

Part 5 Pin risk – what to do if it happens to you


Put your Mind at Ease by Doc Maher
This blog explains the risks of holding long puts through expiration.


Video content
All titles can be accessed in the Resources section of the new Learning Center. You must log in to view a specific video. If you do not have a log in, open your TradeKing account today – it’s free!

Assignment and Exercise Webinar
Join Brian as he explains what happens when options get exercised and the resulting assignment that occurs.

Exercise and Assignment: The Ins and Outs
Brian explains the different exercise styles for American and European options. He also discusses what happens when options get exercised and the resulting assignment that occurs.

Non-Standard Options and More: December Q&A
In the beginning of this webinar Nicole explains how to evaluate Non-Standard options and how to figure out if they are in- or out-of-the-money. Additional topics include margin requirements, bull call spreads, calendar spreads, capital requirements for covered calls, exiting a position before expiration, deciding on stocks to trade, exiting a position when it's moving against you, option strategies permitted in an IRA and more.



 
 
Options involve risk and are not suitable for all investors.
Please read Characteristics and Risks of Standardized Options.

Webinars are provided for educational and informational purposes only. TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. You alone are responsible for evaluating the merits and risks associated with the use of TradeKing's systems, services or products. Non-U.S. residents may be subject to country-specific restrictions.

Jonathan F. Maher, PhD has a professional business relationship with TradeKing.

TradeKing is an online broker which provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice.

(c) TradeKing, Member FINRA, ISE and SIPC. http://www.tradeking.com.

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Posted by NicoleWachs on 02/20/09 at 09:59 AM

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